Is AI the Death of Professional Judgment or its Reincarnation Only with careful oversight and the application of seasoned professional judgment can AI deliver results that are not only accurate but also defensible and unimpeachably neutral. This article in the Unimpeachable Neutrality Series explores the indispensable role of professional judgment, particularly as it intertwines with the capabilities of AI. ...

Guidance from AICPA’s 2024 Accounting and Valuation Guide—Business Combinations There are various methods used to value intangible assets. The relief from royalty method is based on the premise that there are royalty savings if the acquiror acquires the asset instead of licensing it. The value of the asset is calculated as the present value of after-tax royalty savings over the economic life of the asset. T ...

And the Trump Administration’s Freeze This article is the latest installment of QuickRead articles on ESOP regulations. Specifically, it focuses on the request, and status thereof, for the Department of Labor to clarify “adequate consideration” for the valuation of entities held in ESOPs. This article is the latest installment of QuickRead articles on ESOP regulations.[1] Specifically, it focuses on the req ...

Addressing the Value and Professional Standards Issues in the Engagement Resolving a shareholder dispute often requires determining the value of a shareholder’s interest in the business. This article provides a framework for the business valuation expert to discuss this issue with attorneys and clients. Headings organize the questions and issues. Resolving a shareholder dispute often requires determining th ...

Common Practices in Florida, Value Enhancement Strategies, and Market Positioning How are day care and early learning centers valued? In this article, the author shares her thoughts on how these are valued in Florida. In addition, the author shares strategies to enhance the value of the business. "If children are the world’s greatest investment, then daycares are the blue-chip stocks of our future—steady, e ...

Are You Prepared for the Outcome? What can parties in a litigation case do when the experts come to differing opinions of value? The authors share ways that parties and counsel can reconcile the differences or at least reduce the value gap. It sounds great—if the valuation experts can resolve their differences, a trial might be avoided, saving time and money. This strategy is not without peril, and clients ...

How Forensic Accountants and Business Valuation Professionals Can Give AI a “Run for its Money” As AI proliferates, business valuation and forensic accountants will need to distinguish between human-authored and AI assisted/generated content. Significantly, AI generated content, as of the date of writing, is not accurate. In this article, the author examines what the above will mean to forensic accountants ...

A Guide to Understanding Social Media Influenced Income for Valuation Professionals While the influencer industry has created numerous opportunities for creators and brands alike, it also presents significant risks. This article aims to explore the challenges faced in this industry and offer insights into how to examine and assess these risks when performing a valuation analysis or assisting with litigation ...

Part II For purposes of valuing an ESOP, the question of what is “adequate consideration” has vexed the author and other BV practitioners. In this article, the author shares an update on the DOL’s response to earlier inquiries. Her two previous articles published in QuickRead detailed the earlier efforts to clarify what constituted “adequate consideration” for the valuation of entities held in ESOPs. On Oct ...

A New Method of Doing Research The introduction of AI tools has empowered companies to streamline complex tasks, enhance accuracy, and offer real-time insights. One such company, IBISWorld, a leader in industry research, has taken a significant step forward with the introduction of its AI tool, "Phil." This article explores the impact it will have on professionals working in business valuation, forensic acc ...

The Role of Life Insurance in Estate Taxes The recent U.S. Supreme Court case, United States v. Connelly, provides business valuation practitioners opportunities to a cautionary tale and also an opportunity to assist business owners structure or restructure their buy-sell agreements. The authors summarize the case and offer tips to assist business owners transition a business using life insurance. Introduct ...

Valuation Discounts Considered in Gift and Estate Planning With a look forward to December 31, 2025, when the current lifetime exclusion levels for estate taxes are slated to sunset, wealth planners and their clients have much to discuss. Valuation and estate planning professionals have a key opportunity to strategize and develop the best plans for family businesses and high-net-worth individuals. With a lo ...

Under Complex Considerations In Part I of this series, the article presented the fundamental standards used to gain a basis of understanding renewables and valuation drivers. These were presented in the context of an appraisal of wind rights and what would be included, as an example, in a valuation engagement. This second article focuses on the diminution of land values resulting from collateral damage from ...

In Small Business Valuations In a recent joint business valuation review engagement, the author and a fellow appraiser discussed whether one should use market value of invested capital (MVIC) or enterprise value (EV) when applying an income approach in business valuation. In this article, the author discusses these two concepts and sheds some light on why one might use one over the other. A recent joint bus ...

Federal Rules and Regulations Governing ESOPs Business valuation reports of employer’s securities owned by ESOPs are subject to review by plan fiduciaries, government agencies, and IQPAs auditing the ESOP’s financial statements. Each of these readers have their own responsibilities to the participants and beneficiaries of the plans. This article will examine the federal rules and regulations governing ESOPS ...

Techniques Used in a Wind Power Valuation Engagement This article is aimed at valuing renewable interests or rights which is straight forward requiring basic application of valuation techniques. Appraisals that consider diminution of land estate values, damage assessments, complex end of life considerations, repowering analysis require more specific analysis and build up methods to establish defensible valu ...

A Nuanced Approach to Asset Valuation Marketability refers to the ease with which an asset can be sold, and the DLOM accounts for the reduced liquidity of an asset that is not easily traded in the open market. In business valuation, the DLOM is a critical yet contentious adjustment. This article discusses the underlying issues presented in this type of valuation and uses an example to explain the incrementa ...

Using Forensic Accounting Skills to Your Advantage When valuing a business, one essential step in the process is to review and analyze the subject company’s historical financial information. This information allows a business valuator to analyze the company’s past performance and pinpoint trends in the business to forecast its future performance. The author in this article shares his opinion regarding items ...

Ensuring Accurate Valuations with Real-World Testing One of the key assumptions valuation professionals must make is about a company's capital structure. This article explores factors valuation professionals should consider as they arrive at the debt and equity used to value the entity. Business valuation and financial modeling involve navigating a wide range of assumptions, and for the resulting values pro ...

A Forensic Investigation Opens IRS-Floodgate! In this article, the author critiques the IRS Participant Guide for Marijuana Companies. This 200-page guide provides general instructions to the service on the valuation of cannabis farms. The author argues that the compliance guide is completely inaccurate concerning the audit of cannabis cultivation. The author proposes that forensic and valuation professiona ...